credit checks for re mortgage

wends01

Hi, a few weeks ago my husband rang to see if he could get his credit limit on his credot card increased and he was turned down - credit limit is £8,500,credit card always paid on time in full and no other debts.We were told this would go on his credit history, we are now looking to remortgage, this this count against us? Outstanding amount on mortgage is £66,000, house worth £220,000, looking to use RBSthanks in advance

_Andy_

No - one credit search shouldn't pose any problems.

wends01

thanks for replying,have appointment tomorrow with rbs to discuss new deal and just started to worry a bit, thanks again

Jacka87

As mentioned an individual credit search should not affect you to much, however the bank decide if they want to lend to you on a number of factors, if for example you where not a great risk and then you had a credit search it could be the straw that breaks the camels back situation so you should always try to avoid searches unless you need them. However as said one search should not be an issue.

I would however be more concerned at being refused the additional credit on your card, is there a reason for this? If so that reason may stop you getting the re-mortgage. I would try and check your credit file if you can, or speak to the credit card company and ask them the reason as to why you where not given the increase.

This should let you either feel more confident that you wil get creadit or show the reason as to why you might not and allow you to take action to improve your credit rating.

Hope that helps, but from what you have said there seems to be nothing to worrying.

Batchy

sounds like you need an offset mortgage... should be able to get upto 60% of the property realtively easily...

much cheaper than a credit card.

NO one should have have a 8500 limit on a credit card... unless reasonable circumstances for getting one... like £5000 monthly expenses through work etc.

the max should be your monthly income... IMO

jamesd

Batchy, consider things like 0% credit deals, buying holidays and other things with cash back. With these things a credit card can be cheaper than an offset mortgage.

An offset mortgage is expensive if you can make more than the mortgage interest rate from savings accounts or investments. Temporary use of a credit card to avoid short term buying or selling of investments or allow use of term deposit accounts can be sensible in this situation.

wends01

Hi,We never asked for that amount on the credit card, the hsbc kept upping the limited. the reason we wanted to extend it was we were having a new bathroom/ensuite fitted and was paying in on the credit card in case the co went bust.My husband was told it would take 10 mins to increase the level by £2000.If he had have been told there was a chance it would be refused we wouldn't have bothered! The credit card will be paid off in full in the next 2 months